Cancel your phone contract with one text

Networks given 18 months to lay groundwork for text cancellations as regulator speeds up switching times

Mobile phone customers will be able to cancel contracts with a single text message under plans unveiled by Ofcom yesterday. The regulator said mobile networks make it too difficult for customers to switch contracts by forcing them to call in person, then trying to persuade them to stay.

MOBILE phone customers will be able to cancel their contract with a single text message under plans unveiled by Ofcom yesterday.

The communications regulator said mobile networks have made it too difficult for customers to switch contracts by forcing them to call up and attempting to persuade them to stay. Under the new rules they will be forced to instantly provide a so-called PAC code to those who want to keep their phone number, or a cancellation code to those who do not.

Lindsey Fussell, Ofcom’s consumer group director, said the new rules would stop companies from “delaying and frustrating” the process.

She said: “Too many people are put off by the hassle of switching mobile provider. Our changes will make it quicker and easier for mobile phone users to get a better deal.”

The regulator will also ban networks from charging for notice periods beyond the switching date, saving customers an estimated £10m per year. Currently, customers who want to switch providers are typically forced to call their network, which will often attempt to persuade them not to leave before handing over their PAC code or agreeing a cancellation.

Under Ofcom’s system they will be able to text a memorable code to their provider and then receive a response immediately, including their switching code and notice of any outstanding charges and cancellation costs the customer owes.

The regulator said the new rules would come into effect in July 2019, giving networks 18 months to update their processes.

An O2 spokesman said the network did not charge its customers notice fees after they had left, adding: “Generally, we believe the best option for customers is to call us – a voice conversation with one of our advisers remains best suited to help customers understand their options.”

A Vodafone spokesman said: “Customers should not have to pay twice to switch supplier, a change we have already implemented. Proper provision also needs to be made for customers on ‘bundled’ packages, as well as those wanting to switch to forthcoming fibre-to-the-home (FTTH) broadband services.”

Britain’s fourth largest network Three welcomed the move but said that Ofcom should also prevent networks from offering “last ditch” deals after they receive the cancellation message, in line with other countries.

The Government is expected to lay out plans to deliver superfast broadband to rural homes through the universal service obligation (USO) system today, rejecting BT’S £600m voluntary investment into sparsely populated areas of the country.

According to the Financial Times, following a twin-track process to weigh up which scheme would work best, the Government has decided to pursue the USO model, confirming an earlier Daily

Telegraph piece.

This will mean users are given a legal right to demand a broadband upgrade. It comes after BT’S rivals threatened to launch a judicial review should its offer be accepted, amid concerns it would create a monopoly.

Ofcom is expected to be working with the Government to look at how homes in rural regions can now be best connected.

‘Too many people are put off by the hassle of switching mobile provider. Our changes will make it quicker and easier’